AstraZeneca PLC (LSE:AZN) lung cancer data, from the Dato-DXd TL01 study that is expected to be published by the end of March, should see a high positive "which should unlock multi-blockbuster potential", analysts at JPMorgan said.
The analysts said they see a positive readout from the Phase III study in second-line non-small cell lung cancer (NSCLC) patients, de-risking around US$3bn in peak potential in second-line NSCLC.
They also expect a positive read-through to ongoing first-line studies, where the analysts see US$12bn (£10bn) peak potential (US$11bn or £9.15bn incremental), as well as other tumour subtypes, as part of a total US$18bn peak sales estimate for Dato-DXd.
Earlier this week, the analysts said they placed AstraZeneca on "positive Catalyst Watch" into the data, as they see a high likelihood that Dato-DXd will achieve a statistically significant and clinically meaningful improvement in progression-free survival versus chemotherapy in the TL01 study.
The JPMorgan analysts said they see this as driving a potential for more than 5% outperformance from AstraZeneca shares.
In their 2023 outlook for the FTSE 100-listed pharma giant, published earlier this week, the analysts raised their June 2024 price target for AstraZeneca shares to £135 and reiterated an 'overweight' rating on the stock.
In morning trading on Thursday, AstraZeneca shares were changing hands for £115.80.